Question

Journal entry help

Hi, I am having an accounting issue

A customer purchased an item for $500, and then our payment processing company deposited the 500 into our account. The customer returned the item and then the payment processing company took $500 out of our account. What is the journal entry for this? The customer card is showing a -500 that needs to be cleared, the bank account is over 500 and the payment processing account is over 500. How do I get this to balance? What is the JE for this?

Answer 1

1). Sales Entries.

Date	Particulars	Debit	Credit
XX-XX-XXX	Customer A/c	$500/-
	Sales A/c		$500/-

(Sales to the customer $500/-)

2). Payment Entries

Date	Particulars	Debit	Credit
XX-XX-XXX	Bank A/c	$500/-
	Customer A/c		$500/-

(Payment from customer $500)

3) Sales Return Entries

Date	Particulars	Debit	Credit
XX-XX-XXX	Sales A/c	$500/-
	Customer A/c		$500/-

(Goods returned from customer $500/-)

4) Rectification Journal Entry

Date	Particulars	Debit	Credit
XX-XX-XXX	Customer A/c	$500/-
	Bank A/c		$500/-

(Payment return to customer $500/-)

(Rectification Entries for Sales return from Customer)